A contractual agreement in which the party owning the asset records a lease receivable for the promised lease payments as well as earns interest on the financing is best described as:

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A direct financing lease occurs when the lessor records a lease receivable for the promised lease payments and earns interest on the financing, essentially acting as a financier. This type of lease is common in situations where the lessor's primary interest is in the financial aspects of the lease rather than the leased asset itself.

A Contractual Agreement in Which the Party Owning the Asset